LOAN PROGRAM MEMORANDUM

To assure that your Common Manual
remains current, please record this document on your LPM/LPB index and retain it
in Appendix E of your manual.

LOSFA has modified its preclaim
cancellation date, which appears in subsections 8.1.K. and CCI 8.1.K., Preclaim
Assistance Time Frames chart, page 14, of the July, 1999 update of the Common
Manual. Effective November 1, 1999, the preclaim cancellation date will be 30
days, rather than 0 days delinquent.

Lenders should notify LOSFA to
cancel preclaim assistance only when the account becomes less than 30 days
delinquent. This will reduce the time lenders need to stay in touch with LOSFA
on minor delinquencies, reducing their administrative burden. Student loan
borrowers will not receive letters and calls from LOSFA unless they are more
than 30 days delinquent. Contacts prior to that level of delinquency have proven
to be counter-productive. By implementing this change, Preclaims will be able to
provide better assistance to the lenders by focusing its attention and resources
on the borrowers more likely to default.

These revisions will be included in
the Preclaim Assistance Time Frames chart in the next update of the Common
Manual.